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More Medicare Cuts will drive Home Health Agencies to Seek Other Sources of Revenue

The Centers for Medicare and Medicaid Services (CMS) published the proposed 2014 PPS rule on June 27, 2013 which includes another 1.5% reduction in payments.  Add on to this the 2% sequestration cut and agencies will see an average 3.5% decrease in Medicare payments.

As we wrote some months ago, these changes in Medicare reimbursement for home health could be the most significant threat to the industry since the Interim Payment System that was part of the Balanced Budget Act of 1997 caused over 25% of Medicare Certified Home Health Agencies to go out of business. 

Some industry experts are suggesting that this 3.5% cut could be repeated in future years under the Affordable Care Act’s home health rebasing provision.

Over the past three years, we have seen more home health agencies looking for other streams of revenue to reduce their dependence on Medicare and Medicaid.  Of course, one of those potential streams of revenue is Private Duty Home Care.  For more information on how your home health agency can grow it’s private pay revenue, here are several other resources for you to consider:

The Academy for Private Duty Home Care

Private Duty Today

Caregiver Quality Assurance

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